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Hello out there stock charting fans. What an incredible week this was for the Internets and the Biotech’s.
Yahoo! [YHOO] up 25 points, Amazon.com [AMZN] up 24 points and Excite [XCIT] up 12 points, Broadcom [
BRCM] up 15 at one point, CMGI 14 [CMGI], Sepracor [SEPR] in the Biotech area up 12 points.
These are most of your leaders folks. These are the stocks were most of your money should be housed in this
market move. Sure there will be others, but the market is now telling you which are the favorites of the
market as of this writing. You must remember that it’s your leaders that become "Everyready Bunny Rabbits".
They just keep going and going and going. Dell has been going strong now for almost 4 years. AOL has been
going for almost 5 years. Cisco has been the strongest since October of 1990, up some 12,000 percent!. Yes, I
remember Cisco Systems when it had only 15 Million shares total. Today it has 1.5 Billion shares total. Cisco
has had the greatest run in stock market history. By the way Cisco was by far the most volatile stock I had
ever seen at that time. It acted like AMZN does today.
I think AMZN will be the next big mover like AOL and YHOO is also a likely candidate for the big home run.
These two stocks act better than any other stock{s} in the stock market right now. Remember AOL had almost
no earnings for almost 4 years. It’s the potential that the market likes.
I mentioned last week that I think the NASDAQ is the place to be, like it was back in the 1991-1993 bull
market. That was because there were no earnings on the bigger caps. Since earnings are in steep decline on
the bigger stocks, I see a return to those stocks with a story such as the Biotech’s and Internets.
On Monday of this past week, I put in a call to a number of friends and associates to tell them that it’s time to
fully re-enter the market and go long. I was absolutely shocked at the response that I got from these folks.
Everyone thought I was crazy to re-enter the market at this time. The are so scared of the stock market right
now, most won’t even consider entering a long position.
The last time I saw people with this type of reaction was after the crash of 87’. My point here is that, it is
these people that are going to miss the beginning of the big advance in the NASDAQ and the
aforementioned groups and stocks. It is these people that will bring fuel to fan the re after it gets rolling. . It
will be these people that will jump in once again after it’s too late, and get burned once again. They will
never learn and they will never make big money in the stock market.
As I have said here many times in the past and will reiterate it for my new subscribers, " the really big money
comes off market bottoms, not off market tops". Folks, we are coming off a huge bottom and this would be
the right time to take full advantage of this motto. There are a few technical items that do stand in the way
right now of free sailing. They are the 50 day and the 200 day moving average line which are descending on
the averages as I write. I do however see these resistance points being taken out on Tuesday when the Fed.’s
cut interest rates.
After we get through these points, it’s Yahoo! time. The NASDAQ is the closest to these points, so look for a
surge as the NASDAQ goes through it’s 50 and the 200 day which as I write are at around1765.
I only own two stocks right now and they are AMZN and YHOO. I personally like to own the biggest movers in
the market. That’s how you make the most money, so that’s were I want to be. I bought AMZN as it broke it’s
horizontal trend line at 85 and I bought YHOO as it broke it’s descending trend line at 96. For those of you
who have missed these two, there is another buy point that is coming up on AMZN and that is, as it breaks its
new descending trend line at 115.
I see many stocks that are on the move in the market this week, and have some good chart patterns as a
result. These will make good entry points, so I will list them below. I would however like to say, that the
stocks listed above are your best bets at this time.
WEEKLY STOCK PICKS
Amazon.com (AMZN) - $109

What more can be said about this stock than you already know.
Yahoo! (YHOO) - $121

This is your market leader. It will probably go the farthest and the longest in this market run. I would not be surprised to see
this stock up 25 points this week after the Fed.’s cut interest rates. This could be the same for AMZN.
Qologic Inc. (QLGC) - $69

I gave this stock to you two weeks ago at $54 at it promptly went to $70 with ease. The stock has consolidated here and is
set to move again. Buy this stock as it crosses the upper trend line at $69.50 on up to $71.50.
Rambus Inc. (RMBS) - $65

I mentioned this stock in my mid week update. The stock has a hard time keeping still. Buy the stock as it breaks the upper
trend line and be careful as this stock is a wild one. Keep your stops tight.
Sunrise Assisted Living (SNRZ) - $34

This stock had two very large volume days as it came off the bottom. The stock has rested and is set to resume its upward
advance. Buy the stock as it goes into new high here at $35 to $36.50. Never pay more that than 5% after a trend line break.

VISX Inc. (VISX) - $62

I gave this one to you back in May as it gapped up on much better than expected earnings. It went from my buy point at $42
to $70 in 10 weeks. It has corrected in the massive sell off and is now re-building it’s base. Buy the stock as it break it’s trend
line that I have for you in the attached charts.
Intervoice Inc. (INTV) - $23

This stock has a cup and handle formation and is set to go. Buy the stock as it goes into new highs here at 25.25 on up to
$26. Pay no more than that. Earnings were just released and they were up 144% to .30 and revenues were up 13% to 33
million. A very nice looking chart pattern.
CMG Information (CMGI) - $57

This stock and Excite are two very powerful stocks in this market. I must admit, I have never seen come backs in stocks that
are so deeply over sold like I have the Internets. None the less, if they are going to show us the way, I want to be a part of the
excitement. Buy point on this one is as it crosses the descending trend line and crosses the 50 day moving average line at
the same time. This would be at about $63.
Gilat Satellite Network (GILTF) - $45

This stock had a very nice base of 5 months. It has just broken out and could be bought here as it re-enters new highs at
46.25. The company is growing at a much faster pace than the P/E’s which is at 26. Last quarter earnings were up 38% to .47
and revenues were up 37% to 34 million dollars. Only 10 million shares total on this company which makes Satellite Earth
stations, and related software.
Sepracor Inc.(SEPR) - $69

I gave this stock to you many times back in January, February and March as the base was very good. The stock never made a
move, but then again, it never failed to break down out of it’s base. It has nally broken out with convection. Buy this stock as
it breaks into new highs here at $70.50. I would not miss a chance to get this one, as it seems to be the favorite of the
Biotech’s. I also understand George Soros owns a hefty chunk of this stock. This could be fuel for the re if the stock gets red
hot.
Well that’s it for this week folks. I see many other stocks that are going to make you money. I think the ones
that I have listed here are you better stocks on the NASDAQ right now. I do want to list some others here that
are looking good too. I will list them by Tick symbol only DCLK, REMD, AGN, WAT, AMT, MSFT, EXDS, CLTR,
CPLY, CHCS, CSCO, FISV, NSIT, CCRD, INKT, INSS, and AOL which could be bought here.
I will have more for you during the week.
Dan
Dan@chartpattern.com

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